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Insurance Definition: RISK-BASED CAPITAL

By Compuquotes Team on March 27th, 2008

RISK-BASED CAPITAL:

Definition:

  • The need for insurance companies to be capitalized according to the inherent riskiness of the type of insurance they sell. Higher-risk types of insurance, liability as opposed to property business, generally necessitate higher levels of capital.

Information provided by Insurance Information Institute

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